Ascensus Liable for $3M in Unpaid 401(k) Plan Contributions

Ascensus Trust Inc. must pay nearly $3 million to a class of participants in Trojan Horse Ltd.'s 401(k) plan for its failure to ensure that employee contributions were remitted to the plan, the U.S. District Court for the Eastern District of North Carolina ruled (Longo v. Trojan Horse Ltd., 2016 BL 309583, E.D.N.C., 5:13-cv-00418-BO, 9/20/16).

Ascensus breached its duties under the Employee Retirement Income Security Act by failing to investigate a possible lawsuit or other actions in regard to the unpaid contributions, Judge Terrence W. Boyle held Sept. 20. The retirement plan service provider attempted ...